§514E-11  Prohibited practices.  It is a
violation of this chapter for any sales agent or acquisition agent of time
share units or plans to:



(1)  Fail to comply with the disclosure requirements
set forth in section 514E-9 or any rule adopted pursuant thereto;



(2)  Use any promotional device, including but not
limited to entertainment, prizes, gifts, food and drinks, games,
transportation, luaus, ocean recreational activities, land recreational
activities, aerial recreational activities, or tours, or other inducements, or
make any offer thereof, without fully disclosing orally and as provided in
paragraph (3) that the device is being used or offered for the purpose of
soliciting sales of time share units or interests;



(3)  Offer a prospective purchaser a prize or gift as
part of any time share advertising or sales promotion plan, if in order to
claim the prize, the prospective purchaser must attend and complete a sales
presentation, unless written disclosure is furnished to the prospective
purchaser at the time the prospective purchaser is notified of the prize or
gift; provided that the written disclosure is written or printed in a size
equal to at least ten-point bold type and contains all of the following:



(A)  A full description of the exact prize or
gift won by the prospective purchaser including its cash value;



(B)  All material terms and conditions attached
to the prize or gift;



(C)  A statement that the consumer must attend
and complete a sales presentation; and



(D)  An identification of the time share
project to be offered for sale, including type of ownership and price ranges of
the time share interests in that project;



(4)  Misrepresent or deceptively represent any
material fact concerning the time share plan or time share unit;



(5)  Make any representation that a time share
interest is an investment, including but not limited to the value of the
interest at resale;



(6)  Fail to honor and comply with all provisions of a
contract or reservation agreement with the purchaser;



(7)  Include, in any contract or reservation
agreement, provisions purporting to waive any right or benefit provided for
purchasers pursuant to this chapter;



(8)  Receive from any prospective purchaser any money,
property (including but not limited to a credit card), or other valuable
consideration prior to signing a contract or reservation agreement for the
purchase of a time share plan or unit; provided that this paragraph shall not
apply to sums paid by a purchaser or prospective purchaser for a tourist
activity or for any other product or service offered to induce attendance at a
time share sales presentation;



(9)  Make any agreement or contract with a purchaser
before delivering, furnishing, or tendering to that prospective purchaser any
promised promotional device or other instrument;



(10)  Distribute any promotional or disclosure material
separately if the material was filed in a consolidated form;



(11)  Use any unregistered time share booth, or fail to
display at all times a conspicuous, clear, and unobstructed sign of a permanent
nature:



(A)  That contains the words "time
share" or "time sharing" in letters at least three inches tall
and in a color that distinctively contrasts with the background on which the
words appear;



(B)  With minimum dimensions of nine inches by
twenty-four inches, excluding any frame;



(C)  Posted on or in the booth in an upright
position, perpendicular to the ground, and in a location that is easily visible
to passersby; and



(D)  Consistent with such rules as the director
may adopt pursuant to this chapter and consistent also with county ordinances.



No person shall post anything upon or
adjacent to the sign, or include anything in the sign, which indicates that the
booth is not being used for time share solicitation purposes.  As used in this
paragraph, "sign of a permanent nature" specifically excludes
banners, grease boards, marker boards, handwritten signs, or signs constructed
of temporary materials such as paper, poster board, or cardboard.  The signage
requirements of this paragraph shall not apply to a booth located within a
project subject to a time share plan;



(12)  Misrepresent the amount of fees to be charged,
including management fees, or the structure for future fee increase; or



(13)  Sell, offer for sale, or advertise for sale, by
any person, partnership, firm, corporation, joint stock company, or other
association engaged in marketing time share plans within the State, any tourist
activity, including but not limited to land, aerial, or water recreational
activities, at less than the actual cost of the activity paid for by the
licensee thereof to such vendor or give, offer to give, or advertise with the
intent to give away any such tourist activity with the purpose or effect of
inducing the prospective purchaser to purchase a time share plan or to attend a
time share marketing event.



Any violation of this section shall also constitute
an unlawful or deceptive practice within the meaning of section 480-2; provided
that in addition violations of section 514E-31 or of paragraph (11) shall result
in a fine of not less than $50 for each separate offense for a maximum
aggregate amount of $500. [L 1980, c 186, pt of §1; am L 1981, c 81, §6; am L
1984, c 165, §1; am L 1993, c 331, §§1, 3; am L 1994, c 91, §3; am L 1997, c
249, §3; am L 1998, c 136, §§1, 2; am L 2005, c 81, §1]